More people are getting bank loans and buying houses

More people got bank loans and bought houses in November, but sales are still sluggish overall. Image from Wikimedia Commons.

The number of people getting bank loans for houses is increasing. Existing home sales crept up over November for the third increase in four months. However, sales are far below the levels that were seen last year.

More homes being sold and bank loans taken out for purchases

The housing market is still struggling to recover, but there are glimmers of hope in that the number of people taking out bank loans or going to a loan company to purchase a home is increasing, according to USA Today. The seasonally adjusted rate of existing home sales increased to a rate of 4.68 million units per year. The increase for November home sales was the third increase in the rate of home sales in four months. Western states had the largest increase, as sales in the West increased by 11.7 percent, though areas like Nevada and Arizona are still struggling. The Midwest had a boost of 6.4 percent. The Northeast and the South had the smallest increases, rising by only 2.7 and 2.9 percent, respectively.

The bad news

Despite an increase in home sales and more people willing to take out personal loans to buy a home, it isn’t all good news. Home sales over the past year, as opposed to just the past few months, are still dismal. November home sales for 2010 were actually a big drop. About 30 percent fewer homes sold in November 2010 than in November 2009. It’s harder to get a loan, and few people feel safe enough to buy. Home sales are on pace to record the lowest levels in sales since 1997. Applications for mortgage loan modification and new loans dropped in November, but that may be due to few people wanting to buy so close to the holidays.

Not the greatest signs

The real estate industry is still struggling to regain its footing, and the supply of available homes, more than nine months worth, is still more than it should be in a healthy market. However, as long as gains keep getting posted consistently, it will get there eventually.